Q:

Can I tax my car without a logbook?

A:

Quick Answer

Australian workers may deduct work-related car expenses from their taxes without a logbook using any one of three methods, according to the Australian Taxation Office. One can choose the most advantageous method, but Vasin Accountants and Taxation Advisors suggests that a fourth method, the logbook method, provides the largest tax deduction.

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One method of deducting work-related car expenses is by using cents-per-kilometer, states the Australian Taxation Office. In this method, the taxpayer uses a set rate for each business kilometer. Another method is by claiming 12 percent of the original value of the car. The third method is to claim one-third of the business-related car expenses incurred during the year.

The ATO also notes that there are guidelines regarding how many business kilometers the taxpayer drove in a year. Individuals who traveled 5,000 kilometers or fewer in the tax year may choose only between the logbook and the cents-per-kilometer methods. Individuals who traveled more than 5,000 kilometers in the year may choose from any of the four methods. The ATO notes that those who use the cents-per-kilometer method or the percentage of original value don't need a written record of kilometers driven, but they may be asked to show how they calculated the business kilometers. Those who use the method of calculating one-third of expenses must keep records that include odometer readings.

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